Mobix Labs, Inc. Class A Common Stock Status update

Good afternoon. I'm Phil Sansone, CEO of Mobix Labs. Thank you for joining today's investor update call. This is an exciting time for the company. Our existing business continues to improve, and at the same time, we are expanding into the rare earth and critical minerals market. As we've communicated previously, our vision is to transform the company into NSM Labs under our National Security Matters initiative. When we last spoke on August 13th announcing our definitive agreement to acquire Special Project Delivery or SPD, we laid out our strategy. National security starts with critical minerals, and we will build this company by acquiring proven capability rather than starting from scratch. Before we get to the reason for today's call, I'd like to share a quick update on the Mobix business.

Following our September 24 announcement, we now expect revenue for fiscal fourth quarter 2026, which ended September 30, to come in closer to the high end of our $1.4 million-$1.8 million guidance range, well above the $1.6 million midpoint. That would represent more than 100% growth quarter-over-quarter, along with substantially higher gross margins. The growth is coming from both sides of our business, with higher wireless system shipments and continued strong military demand. We expect that growth to continue in fiscal first quarter 2027. The reason we are here today. On Monday, SPD, the company Mobix Labs has agreed to acquire, announced a definitive agreement to acquire Winner Water Services. Winner is a revenue-generating U.S. rare earth company based in Sharon, Pennsylvania.

It recovers rare earth elements, scandium, and alumina from coal ash material that is already above ground, so there is no new mine to permit. Over the past 10 years, Winner has earned six consecutive awards from the Department of Energy and the Department of Defense, totaling $53 million. In August, Winner broke ground on its rare earth extraction demonstration plant at the National Carbon Capture Center in Wilsonville, Alabama. Winner will be the first operating company to join our National Security Matters platform, and it is exactly what our NSM mandate calls for. Proven capability that strengthens America's domestic supply of critical minerals. To tell you more, I will turn it over to Paul Singarella, CEO of SPD.

Paul. Thank you, Phil. This summer, Mobix and SPD launched the National Security Matters initiative.

We are now pleased to give you more color and detail on how that initiative is taking shape and how it is transforming Mobix, our public partner. We are still in the early stages, and there is a great deal of work ahead. We told you we were building a company capable of helping to onshore the nation's critical minerals and rare earth supply chains. We told you that that vertical is nested into a broader set of verticals, each one directly focused on national security and the nation's economic priorities. Here we are, less than 2 months later, very happy to report on our early progress.

Winner Water Services has been developing its rare earth recovery program from the ground up for the past decade and is now building its fully funded $25 million demonstration plant, as Phil said, in Alabama. Winner's success along the way has been validated by repeat funding awards from the U.S. Department of Energy and the U.S. Department of Defense. SPD has known Winner for 3 years, over which time we have built a strategic partnership that progressed naturally to today's announcement that we will combine our businesses. The fit is hand in glove. Winner brings deep and proven technology, chemical engineering, and operating expertise. SPD, for its part, brings project execution and finance expertise at scale.

This combination is exactly what is needed to achieve commercial success for a multi-billion dollar plant, which is exactly what it will take to produce rare earths at the scale needed to break the nation's foreign dependency. We are different from the pack in important ways. There are very few U.S. companies that have a decade-long history in rare earth recovery. There are very few U.S. companies that combine that with the mega project success that the SPD team brings to the table. There are very few U.S. companies that have made the cut in the rare earth space over and again with DOE and DOD. And there are very few U.S. companies that have what we have, a focus on extracting the rare earths from coal ash, which is a virtually limitless supply of feedstock that does not involve the complexities and delays of opening a new mine.

To say the least, we are bullish on what we are building, and we believe that further combining with our public partner, Mobix, which already has an established presence in national defense and security tech, gives us access to the public capital markets, which, together with federal and partner capital, is how projects of this scale get built. Winner is our first and our anchor critical minerals business. It won't be our last. Build great teams, acquire critical capabilities, execute with discipline, create lasting value for our shareholders. That's the road we are on. With that, operator, let's open it up for questions.

Sure, Mike, this is Paul Singarella. Great question. Very carefully. We've been at this for 10 years. We've been very successful at it. The $53 million that came to Winner in six chunks over that decade demonstrate that DOE and DOD have been impressed with the progress that we've made. On a technical basis, Mike, it's a multi-stage treatment train. You're absolutely right that it's not an easy thing to do, but one thing to make clear is that when you combust coal, you end up concentrating the rare earth concentrations over what's in the actual coal ore to begin with. That's your starting place. You've taken the carbon content largely out of it, and then it's a number of steps to actually get all the way to metallization, which we are not doing at this point. It's literally hundreds of steps.